Time To Re-Think Hong Kong In Your China Strategy?

Hong Kong brand building

Hong Kong has long enjoyed brandowner attention for its unique exposure to Mainland Chinese consumers and its dynamic retail scene. Driven by better prices and quality reassurance, Hong Kong will continue to be a retail destination for years to come.

Many brands have historically leveraged Hong Kong to create a “brand halo” on Chinese consumers. However, as Chinese consumers gain great access to multiple information sources and the costs of doing business in Hong Kong surge, can brandowners justify reduced profits in Hong Kong with the China halo argument?

Our belief is that it only makes sense for retailers to invest behind a brand in Hong Kong if it is profitably in its own right. For consumer goods companies in certain categories, however, lower profits during the investment stage in Hong Kong may be justified with ...